INDUSTRY PROFILE
INTRODUCTION:
Cement is a key infrastructure industry. It has been decontrolled from price and distribution on 1st march, 1989 and de-licensed on 25th July 1991. However, the performance of the industry and prices of cement are monitored regularly. The constraints faced by the industry are reviewed in the infrastructure coordination committee meetings held in the cabinet secretariat under the chairmanship of secretary (coordination). The cabinet committee on infrastructure also reviews its performance. Indias stand in the world India is the 4th largest cement producer world wide, following china, Japan and U.S.A. Indias percapita consumption is only 78kg as compared to the world average of 251kg by the turn of the century. Indias capacity is expected to crores 100 million tones. The industry has 59 companies owning 115 plants. In the matter of exports, the government considers cement as an extreme focus area. However, industry experts comment that exports are mainly for keeping a check on the domestic prices, which get adversely affected due to exam production. In the global market. India cement is not very competitive due to high power and fuel costs. In order to improve its position in the international market, technological up gradation is essential in terms of process, product diversification, cost reduction quality control and energy savings.
LANCO INDUSTRIES
capital of the company by M/s ECL to strengthen the equity base of the company.
commissioned in June 2005. MW by using the waste heat recovered from the coke oven plant, which is expected to be commissioned by March 2006. An additional amount of Rs.25 crores is being spent on other capital works like revamping of bitumen coating machine, balancing equipment and facilities for production of higher diameter DI pipes etc., to increase the capacity of DI pipes from the present 90000 TPA by 2006-07.
LANCO INDUSTRIES
COMPANY PROFILE
LANCO industries limited are one of the best mini-blast furnace pig iron manufacturing units in our country, and it was the 5th plant under Tata-Kore Technology. The company was incorporated on November 1st 1991 under companies act-1956, in the name of LANCO Ferro LTD. To company started construction work in august 1993. The entire construction work was completed in a record time of 12 months. This was achieved by team work of Lanco collective and the best efforts of the contractors. With these achievements the company started commercial productions in September 1994. The name LANCOFERRO LIMITED was changed to LANCO INDUSTIES LIMITED on July 6th 1994. LANCO INDUSTRIES LIMITED is located in between TIRUPATI and SRIKALAHASTHI with an access of 30kms from TIRUPATI about 10 kms for SRIKALAHASTHI. The reasons for LANCO INDUSTRIES at RACHAGUNNERI village, SRIKALAHASTHI mandalam of chittoor district Andhra Pradesh are as follows, Cheap availability of required land. There is more water resource. The distance between the harbor and present work spot is less. Proximity of raw materials. Proximity to marketing. To have financial subsidy. Nearer to railway sidings. Availability of labour.
LANCO INDUSTRIES
LOCATION
Lanco Industries Limited is rural based factory sprawling over many areas of land with deep resources and congenial soil. It is located in Rachagunneri village near Tirupati, nearly 50% of the consumption of electrical power is supplied by APSEB, government of Andhra Pradesh and other 50% of power is maintained by the company owned DG sets and power plants. Since it is a rural area labour potential is available an also company is enjoying the subsidies from state government.
VISION
To empower, enable and enrich partners, businesses and associated. To be a chosen vehicle of growth for all stakeholders and a source of inspiration to society.
MISSION
To be a leader in all areas key to the development of a nation and progress of the world. To be a leader in the field of infrastructure, manufacturing and information technology. To become learning organization and enable people to think like geniuses.
SERVICE TO SOCIETY
In addition to his entrepreneurial spirit, Raja gopal has a strong sense of social responsibility. He established LANCO institute of general Humanitarian Trust (LIGHT), a Charitable Trust, in 200 to reach out to the needy and has been involved in various philanthropic activities.
LANCO INDUSTRIES
Developing a world-class organization driven by excellence Delivering the best products and services and tiring to achieve customer delight Empowering our people and creating an environment of learning Striving to remain a company driven by innovation and entrepreneurship Being a socially responsible corporate citizen
LANCO INDUSTRIES
REVIEW OF LITERATURE
Financial Management has always vital and an integrated part of business management. Financial management is concerned with the planning and controlling of the firms financial resource. It is often said that the financial management has received less emphasis as compared to topics like production and marketing. However, the task of financial planning and controlling will assume relative more important role than in the past due to certain changes that have taken place or will take place in economy. Factors such as increasing pace of industrialization, technological innovations land inventions, raising price levels, increasing of government in financial matters etc.
Financial Management is an area of financial decision making harmonizing individual motives and enterprise goals. Western and Brigham
1. PROFIT MAXIMIZATION
An individual or firm performing any economic activity rationally aims at utility maximization. Utility can be measured in term of profit. Profit maximization ensures the use of resources the best of their advantage to gain maximize out of them. It maximizes the social economic welfare. It will be a motive force to acquire monopoly power in the perfect product market.
2. WEALTH MAXIMIZATION
According to prof. Solman, maximization of the wealth provides a useful and meaningful objective as basic guideline by which financial decision should be valuated. Wealth maximization means maximizing the net present value of a course of action to share holders. The net present value (NPV) of a course of action is difference between the present value its benefits and present value of the cost. The positive value creates wealth and it is desirable. The negative present value should be rejected.
LANCO INDUSTRIES
LANCO INDUSTRIES
CLASSIFICATION OF RATIOS
Several ratios calculated from the accounting data, can be grouped into various classes according to financial activity or function to be evaluated. The parties interested in financial analysis are short and long-term creditors, owners and management. Short-term creditors main interest is in the liquidity position or the shortterm solvency of the firm. Long-term creditors are more interested in the long-term solvency and profitability of the firm. Similarly, owners concentrate on firms profitability and financial condition. Management is interested in evaluating every aspect of the firms performance.
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LANCO INDUSTRIES
In view of the requirements of the various uses of ratios, we may classify them into: 1. Liquidity Ratio 2. Leverage Ratio 3. Activity Ratio 4. Profitability Ratio
1. LIQUIDITY RATIO:
Liquidity ratios measure the ability of the firm to meet in current obligations. Liquidity ratios, by establishing a relationship between cash and other current assets to current obligations, provide a quick measure of liquidity. A firm should not suffer from lack of liquidity and excess liquidity. It should strike a proper balance between the high and lack of liquidity. To measure the liquidity of a firm, the following ratios can be calculated. Current Ratio Quick Ratio Cash Ratio Net Working Capital Ratio
2. LEVERAGE RATIO:
The short-term creditors, like bankers and suppliers of raw material, are more concerned with firms current debt-paying ability. On the other hand, long-term creditors, like debenture holders, financial institutions etc., are more concerned with the firms long-term financial strength. These ratios indicate mix of funds provided by owners and lenders. The process of magnifying the share holders return through the use of debt is called Financial Leverage or Financial Gearing or Trading on Equity. Leverage
11
LANCO INDUSTRIES ratios are calculated to measure the financial risk and the firms ability of using debt to share holders advantage.
The following are the some of the leverage ratios. They are: Debt Equity Ratio Fixed Assets Ratio Proprietary Ratio
3. ACTIVITY RATIO:
Funds of creditors and owners are invested in various assets to generate sales and profits. The better the management of assets, the larger the amount of sales. Activity ratios are employed to evaluate the efficiency with which the firm manages and utilizes its assets. These are also called Turnover Ratios, because they indicate the speed with which the assets are being converted or turned over into sales. Activity ratios, thus involves a relation between sales and assets. It helps to judge the effectiveness of assets utilization. Some of the important ratios are as follows: Inventory Turnover Ratio Working Capital Turnover Ratio Fixed Assets Turnover Ratio Debtors Turnover Ratio Total Assets Turnover Ratio Net Assets Turnover Ratio Debtors Collection Period Creditors Payment Period
4. PROFITABILITY RATIO:
Profit is the difference between revenues and expenses over a period of time. Profit is the ultimate output of a company, and it will have no future if it fails to
12
LANCO INDUSTRIES make sufficient profits. Profitability ratios are calculated to measure the operating efficiency of the company.
Some of the important profitability ratios are as follows: Operating Profit Ratio Operating Ratio Gross Profit Ratio Non-Operating Income Ratio Operating Expenses Ratio Net Profit Ratio
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LANCO INDUSTRIES
RESEARCH METHODOLOGY
PRIMARY DATA:
The primary data was collected the interactions and discussions with companys executives.
SECONDARY DATA:
Most of the calculations are made on the financial statements of the company and the company provided financial statement for four financial years i.e., 2004-2005, 2005-2006, 2006-2007 and 2007-2008.
Some of the information regarding to the theoretical aspects were collected by referring standard text books and through internet.
TOOLS OF ANALYSIS:
The data relating to the performance of LANCO INDUSTRIES LIMITED drawn from the different sources have been analyzed by using appropriate financial tools.
14
LANCO INDUSTRIES
15
LANCO INDUSTRIES
16
LANCO INDUSTRIES
17
LANCO INDUSTRIES
The study is based on the information provided by the organization in the form of various annual reports and it is not standard.
The study is based on only the balance sheets and profit & loss accounts of the company and it has its own limitations.
Ratio analysis only provides a glimpse of the past performance and forecasts for future may not be correct since several other factors like market conditions, management policies etc., may effect the future operations.
18
LANCO INDUSTRIES
19
LANCO INDUSTRIES
Current Ratio
3.00 2.50 2.00 Current Ratio 1.50 1.00 0.50 0.00 2003-04 2004-05 2005-06 2006-07 2007-08 years Current Ratio
Inference:
The current ratio of LIL varied from 2.01 to with an average of 2.16 during the study period. In the above table and chart, the ratio of current assets and current Current Assets Year 2003-04 2004-05 2005-06 2006-07 2007-08 (Rs. in lakhs) 11302.96 16137.54 18321.76 26196.83 26616.98 Current Liabilities (Rs. in lakhs) 5625.29 8681.59 9556.53 10726.59 10030.68 Current Ratio 2.01 1.86 1.92 2.44 2.65
20
LANCO INDUSTRIES liabilities should be 2:1 according to the financial report of the company that the firm is liquid and has ability to pay its current obligations in time.
QUICK RATIO:
Quick ratio express relationship between quick assets and current liabilities. It is obtained by measures quick assets by current liabilities. A quick ratio of 1:1 is considered adequate. For every one rupee current liabilities there should be maintained one rupee of worth of quick assets. Quick Assets Quick Ratio = ------------------------------Current Liabilities Table 2: Current Assets Year 2003-04 2004-05 (Rs. In Lakhs) 11302.96 16137.54 Inventory (Rs. in Lakhs) 5294.05 7075.18 Current Liabilities 5625.29 8681.59 Quick Ratio 1.07 1.04
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LANCO INDUSTRIES 2005-06 2006-07 2007-08 18321.76 26196.83 26616.98 9194.08 10636.86 12092.91 9556.53 10726.59 10030.68 0.96 1.45 1.45
Quick Ratio
1.60 1.40 1.20 1.00 Quick Ratio 0.80 0.60 0.40 0.20 0.00
Inference:
The quick ratio of LIL varied from 1.07 to 1.45 with an average of 1.11. It was above standard norm of 1:1 for the entire period. It conforms that the liquidity
22
LANCO INDUSTRIES position of this LIL in terms quick ratio was more than the standard except in the 2005-06 financial year. The firms capacity of pays of currant obligations immediately and is a test of liquidity. The high quick ratio is an indicate of the firm is liquid and has the ability to meet is current liabilities.
CASH RATIO:
This ratio is also called Absolute Liquidity Ratio or Super Quick Ratio. Since cash is the most liquid asset, a financial analysis may examine cash ratio and its equivalent to liabilities. Trade investment or marketable securities are equivalent of cash, the reform, they may be included in the computation of cash ratio is, (Cash + Marketable Securities) Cash Ratio = ---------------------------------------------------Current Liabilities Table 3: Cash Year
2003-04
(Rs. in lakhs)
447.49
Cash Ratio
0.08
23
LANCO INDUSTRIES
2004-05 2005-06 2006-07 2007-08 247.72 350.67 2650.37 420.1 8681.59 9556.53 10726.59 10030.68 0.03 0.04 0.25 0.04
Cash Ratio
0.25 0.20 0.15 Cash Ratio 0.10 0.05 0.00 2003-04 2004-05 2005-06 2006-07 2007-08 years Cash Ratio
Inference:
24
LANCO INDUSTRIES The cash ratio of LIL was started low at first by 0.08 in the year 2003-04 and it was decreased by next two years. Then it was increased by 0.25 in the year 200607. Finally, at the last year it was fastly decreased by 2007-08 by 0.04. So, it is bad position.
25
LANCO INDUSTRIES
2003-04 2004-05 2005-06 2006-07 2007-08 5677.67 7455.95 8765.23 15470.24 16586.3 22264.36 28680.37 32901.4 40386.36 43836.66 0.26 0.26 0.27 0.38 0.38
NWC Ratio
0.40 0.35 0.30 0.25 NWC Ratio 0.20 0.15 0.10 0.05 0.00
Inference:
26
LANCO INDUSTRIES The NWC ratio of LIL was started with 0.26 in the first year 2003-04 and it was increased same like another two years respectively. The NWC ratio was increased to 0.38 by the year 2006-07 and it was constant to next 2007-08 year. The average NWC ratio of LIL is 0.40 for during period.
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Total Debt
16127.82 20899.21 24931.96 31301.36 32679.87
Capital Employed
22264.36 28680.31 32901.4 40386.36 43836.66
Debt Ratio
0.72 0.73 0.76 0.78 0.75
Debt Ratio
0.78 0.77 0.76 0.75 0.74 Debt Ratio 0.73 0.72 0.71 0.70 0.69
Inference:
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LANCO INDUSTRIES The debt ratio of LIL was started with 0.72 at first year 2003-04. It was increased to 0.73, 0.76 and 0.78 by remaining years i.e.2004-05, 2005-06 and 2007-08 respectively. The last year it was decreased with 0.75. The average debt ratio of LIL is 0.74 for the above study period.
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Total Debt
16127.82 20899.21 24931.96 31301.36 32679.87
Net Worth
6136.54 7781.1 7969.42 9085.06 11156.06
Inference:
30
LANCO INDUSTRIES The debt equity ratio of LIL was started with 2.63 at first time in the year 2003-04 and then it was increased up to 3.45 in the year 2006-07. At last it was decreased by 2.93 in the year 2007-08. The average debt equity ratio of LIL is 2.96 during the Study period.
Employed
9908.67
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LANCO INDUSTRIES
2004-05 2005-06 2006-07 2007-08 22264.36 28256.36 32283.34 40386.36 6136.54 7781.1 7969.42 9085.06 3.63 3.63 4.05 4.45
2003-04 2004-05 2005-06 2006-07 2007-08 years Capital Employed to Networth Ratio
Inference:
32
LANCO INDUSTRIES This ratio of LIL was started with 3.63 at first year 2003-04 and it was increased up to 4.45 in the year 2006-07. At last it may decrease by 3.93 in the year 2007-08. The average of this ratio of LIL is 3.96 during the study period.
(Rs. in lakhs)
21024.1 28607 30295.6 36936 46365
Inference:
The inventory turn over ratio of LIL was started with 3.97 at 2003-04. It was increased by 4.04 i.e., 2004-05 and slowly fluctuation by next 2 years. It was
34
LANCO INDUSTRIES increased by 3.83 i.e., 2007-08. The average ratio of LIL is 3.72 for the above study period.
Year
2003-04 2004-05 2005-06
35
LANCO INDUSTRIES
2006-07 2007-08 3.47 3.83 103.7 94.0
120.0 100.0 80.0 60.0 40.0 20.0 0.0 2003-04 2004-05 2005-06 2006-07 2007-08
years Days Inventory Holdings
Inference:
The days inventory holdings of LIL was started with 90.7 at 2003-04 and it was decreased by 89.1 in the year 2004-05. Then it was again increased by 109.1 at 36
LANCO INDUSTRIES 2005-06. At last it was decreased by 103.7 to 94.0 in the years 2006-07 and 2007-08 respectively.
(Rs. in lakhs)
21024.1
37
LANCO INDUSTRIES
2004-05 2005-06 2006-07 2007-08 28607 30295.6 36936 46365 7197.89 6706.59 7667.92 8814.31 3.97 4.52 4.82 5.26
Inference:
38
LANCO INDUSTRIES The debtors turn over ratio of LIL was started with 5.13 by the year 200304. It was going up to, increased by 4.52 to 4.82 and it stands at last by 5.26 in the years 2004-05, 2005-06 and 2007-08 respectively. The debtors turn over ratio average of LIL is 4.74 for the above study period.
39
period(Days)
70.2 90.7 79.6 74.7 68.4
Inference:
40
LANCO INDUSTRIES The Collection period of LIL was started with 70 days at 2003-04. It was increased to another two years by 90 and 80 i.e. 2004-05 and 2005-06. Then the next year2006-07 it was decreased by 75 days and the last year decreased with 68 i.e. 2007-08. The average collection period of LIL is 76.7 days during the study period.
(Rs. in lakhs)
21024.1
41
LANCO INDUSTRIES
2004-05 2005-06 2006-07 2007-08 28607 30295.6 36936 46365 28680.37 32901.4 40386.36 43836.66 1.00 0.92 0.91 1.06
Inference:
42
LANCO INDUSTRIES The net assets turn over ratio of LIL was 0.94 in the year 2003-04. It was increased and decreased by1.00 to 0.92 and 0.91 in the years2004-05 to 2006-07 respectively. Then it was increased in the year 2007-08 by 1.06. The average of net assets turn over ratio of LIL is 0.96 during the above study period.
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LANCO INDUSTRIES
2003-04 2004-05 2005-06 2006-07 2007-08 21024.1 28607 30295.6 36936 46365 15889.32 20619.42 24129.72 24912.53 27242.36 11302.96 16137.54 18321.76 26196.83 26616.98 0.77 0.78 0.71 0.72 0.86
Inference:
44
LANCO INDUSTRIES Total assets turn over ratio in the year 2003-04 to 2007-08 is 0.77, 0.78, 0.71, 0.72, and 0.86 respectively. This ratio is ideal capacity the fraction standard ratio 2:1 the company is not maintain the satisfactory level. The Average Total Assets Turn over Ratio of LIL is 0.76 during the above study period.
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Sales Year
2003-04 2004-05 2005-06 2006-07 2007-08
LANCO INDUSTRIES Net Fixed Assets Fixed Assets Turn (Rs. in lakhs)
15889.32 20619.42 24129.72 24912.53 27242.36
(Rs. in lakhs)
21024.1 28607 30295.6 36936 46365
over Ratio
1.32 1.39 1.26 1.48 1.70
Inference:
46
LANCO INDUSTRIES The Fixed Assets Turn over Ratio of LIL was started with 1.32 in the year 2003-04. Then it was increased and decreased by 1.39 and 1.26 by the years 2004-05, 2005-06 respectively. At last it was increased by 1.48 to 1.70 in the years 2006-07 and 2007-08 respectively. Then the average of this ratio of LIL is 1.43 during the above study period.
47
Sales Year
2003-04 2004-05 2005-06 2006-07 2007-08
(Rs. In lakhs)
21024.1 28607 30295.6 36936 46365
Inference:
48
LANCO INDUSTRIES The current assets turn over ratio of LIL was started with 1.86 in the year 2003-04 and it was decreased by 1.77, 1.65 and 1.41 i.e. 2004-05, 2005-06 and 2006-07 respectively. Then it may increased by 1.74 in the year 2007-08. The average current assets turn over ratio of LIL 1.68 during the above study period.
(Rs. in lakhs)
21024.1 28607
49
LANCO INDUSTRIES
2005-06 2006-07 2007-08 30295.6 36936 46365 8765.23 15470.24 16586.3 3.46 2.39 2.80
Inference:
The Working Capital Turn over of LIL was started with 3.7 in the year 2003-04. Then it was increased by 3.84 in the year 2004-05. At the last three years 50
LANCO INDUSTRIES i.e.2005-06, 2006-07 and 2007-08 it was decreased by 3.46, 2.39 and 2.80 respectively. The average of Working Capital Turn over Ratio of LIL is 3.24 during the study period.
Year
Gross Profit
Net Sales
51
LANCO INDUSTRIES
2003-04 2004-05 2005-06 2006-07 2007-08 3218.04 3474.2 608.91 2164 4001.44 23858.3 31587 33589 41045 49472 13.49 11.00 1.81 5.27 8.09
Inference:
52
LANCO INDUSTRIES The Gross Profit Ratio in the year 2003-04 is 13.49, and it is decreased in the next two years, 2004-05 and 2005-06 by 11.00 to 1.81 respectively. Later it is increased in the year2006-07 and 2007-08 by the values of 5.27 and 8.09 respectively.
53
LANCO INDUSTRIES Net Profit after Year 2003-04 2004-05 2005-06 2006-07 2007-08 Tax 2552.8 2698.3 1163.79 2417 3395.2 Net Sales 21024.1 28607.2 30295.6 36936 46365.6 Net Profit Ratio 12.14 9.43 3.84 6.54 7.32
Inference:
54
LANCO INDUSTRIES The above graph shows the Net Profit Ratio of five years from 2003-08. This shows the relation between Profit after Tax and Net Sales. The Net Profit Ratio in the year 2003-04 is 12.14 and it will decreased in the years 2004-05 and 2005-06 by 9.43, 3.84 respectively. At the last two years the ratio is 6.54 and 7.32 i.e. 2006-07 and 200708 respectively.
55
Tax
2604.61 2094.1 415.02 1580.1 2591.74
Inference:
56
LANCO INDUSTRIES The Earnings per Share was 4.91 in the year 2003-04 and it was decreased up to 3.95 and 0.78 by the years 2004-05 and 2005-06. Then it was increased in the years 2006-07 and 2007-08 by the values of 2.98 and 4.89 respectively.
57
(Rs. in lakhs)
6136.54 7781.1 7969.42 9085.06 11156.06
58
LANCO INDUSTRIES
Inference:
The Book Value per Share was 11.58 in the year 2003-04 and it was increased up to 2004 to 2008 like 14.68, 15.04, 17.14 and 21.05 respectively. So, its ratio is proprietary satisfactory.
59
LANCO INDUSTRIES satisfactory form 2004 to 2008 i.e. in 2004 it is 1.07, in 2005 it is 1.04, in 2006 it is 0.96, in 2007 it is 1.45 and in 2008 it is 1.45. In the year 2004-2008 the cash ratios are 0.08, 0.03, 0.04, 0.25and 0.04 respectively. But it is satisfactory in all years. So the company cash flow is very well. Debt equity ratio gives results relating to the capital structure of the firm. The company depending on debt fund if is fluctuating. In the year 2004 it is 2.63, 2005 it is 2.69 and from the year 2006, 2007 and 2008 it will be in continuous increasing trend 3.13, 3.45 and it has decreased to 2.93 in 2008. The capital employed to net worth ratio was 4.45 in the year 2007; it is more when compared to the other preceding years 2004 to 2005.
The inventory turn over ratio was started with 3.97 at 2003-04, it was increased by 4.04 i.e. 2004-05 and slowly fluctuating by next two years. It was increased by 3.83 i.e. 2007-08. The average turn over ratio is 3.72 for the above study period.
The gross profit shows a fluctuating trend. Gross profit ratio is a bad position and also the profit earnings were not good. The net profit ratio also shows a fluctuating trend, due to the bad position of net profit ratio and also the profit earnings were not good. The ratio from 2004-08 is 12.14, 9.43, 3.84, 6.54 and 7.32.
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LANCO INDUSTRIES The earnings per share also show a fluctuating trend. The share holder is not satisfied. But it is increased to 2004 it was 4.91 and again the ratio was decreased up to 2005 to 2006 it was 3.95 and 0.78. Te book value per share was 11.58 in 2004 and it was increased in the year 2005 to 2007 like 14.68, 15.04 and 17.14. So its ratio is proprietary satisfactory.
SUGGESTIONS
The company is suggested to improve the net profit by increasing the volume of sales as it is found that sales percentage is fluctuating over the years. The company performance is largely dependent on the performance of the industry. The company should maintain sufficient cash to meet daily obligations.
61
LANCO INDUSTRIES The company has to go for integrated marketing, so that it can increase its sales, with this the profits will be increased. The debt equity ratios are fluctuating the company. It is suggested to maintain a low debt by procuring the funds through equity shares in order to maintain a better debt equity ratio. The company is suggested to improve the net profit by increasing the volume of sales as it is found that sales percentage is fluctuating over the years.
CONCLUSION
After studying the financial performance of LIL it is the found that the company is more depended on its own money, which is not suggestible for the growth of the company. The company expenditure more than spends to money i.e. limited; spend to expenditure to a company suggestion from me. Company fixed assets is increasing the years to years. The companies not interested to investment but concentrate to investment spend some of money. How ever the company financial position was satisfactory.
62
LANCO INDUSTRIES
BIBLIOGRAPHY
Author Title of the book Publisher Edition Author : I. M. Pandey : Financial Management : Vikas Publishers : 9th Edition : Prasanna Chandra
63
LANCO INDUSTRIES
Title of the book Publisher Edition Author Title of the book Publisher Edition Author Title of the book Publisher Edition
: Financial Management : Tata McGraw- Hill Co. Ltd : 7th Edition : Dr.S.N. Maheswari : Financial Management : Sultan chand & sons : 7th Edition : Khan & Jain : Financial Management : Tata McGraw- Hill Co. Ltd : 4th Edition
Website: www.lancoindustries.com
13 14
15 16
15484.00 4403.50 -
64
allowances Other expenses Interest and financial charges Depreciation Total Profit before tax Provision for current tax Less: MAT credit entitlement Provision for fringe benefit tax Provision for deferred tax Profit after tax Balance brought forward from previous year Profit available for appropriation Appropriations Transfer to general reserve Proposed dividend Tax on dividend Balance carried to balance sheet Basic diluted earning per share No. of shares used in computing basic.
17 18 19
872.50 1881.60 1331.15 807.04 18105.67 3218.04 164.17 449.26 2604.61 51.81 2552.80 1500.00 397.64 50.95 604.21 2552.80 6.55 397.63
LANCO INDUSTRIES 954.90 1254.33 1449.00 1612.60 1879.06 2331.00 989.50 1257.86 1832.00 852.50 1093.6 1156.00 24298.00 30505.85 35276.00 3474.20 608.91 2164.00 272.42 52.78 242.00 -52.78 242.00 17.21 1107.60 193.89 566.00 2094.10 415.02 1580.00 604.21 748.77 837.00 2698.30 1500.00 397.64 51.97 748.77 2698.30 5.27 397.63 1163.79 100.00 198.82 27.88 837.09 1163.79 1.04 397.63 2417.00 1000.00 397.00 67.08 858.00 2417.00 3.98 397.63
1862.53 2479.56 2302.59 1512.99 42471.50 4001.44 453.41 453.41 1392.16 17.54 2591.74 858.92 3395.20 1500.00 397.64 67.58 1242.48 3395.20 6.52 397.63
BALANCE SHEET
(Rs. In Lakhs)
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LANCO INDUSTRIES
Particulars Source of funds 1. Share holders funds a) Share capital b) Reserve & Surplus 2. Loan funds a) Secured loans b) Unsecured loans 3. Deferred tax liability Total Application of funds 1.Fixed assets a) Gross block b) Less: Depreciation c) Net block d) Capital work in progress 2. Investments 3. Current assets, loans and advances a) Inventories b) Sundry debtors c) Cash & bank balances d) Loans and advances Less: Current liabilities a) Current liabilities b) Provisions Net current assets 4. Miscellaneous expenditure (Adjustment) Total
Scd
2003-04
2004-05
2005-06
2006-07
2007-08
1 2 3 4
3976.30 3804.70 10886.30 9588.74 424.17 28680.37 20021.36 5417.03 14604.33 6015.09 589.83 7075.18 7197.89 247.72 1616.75 16137.54 8095.45 586.14 8681.59 7455.95 10.17 28680.37
3976.30 3993.00 9244.80 15069.10 618.06 32901.40 25035.99 6510.29 18525.70 5604.02 9194.08 6706.59 350.67 2070.42 18321.76 9202.11 354.42 9556.53 8765.23 6.45 32901.40
3976.36 5108.64 16382.92 13733.65 1184.79 40386.36 31824.32 7666.24 24158.08 754.45 10636.86 7667.92 2650.37 5241.68 26196.83 10188.34 538.25 10726.59 15470.24 3.59 40386.36
3976.36 7179.70 17832.23 12271.32 2576.32 43836.66 35516.23 9127.98 26380.35 862.01 12092.91 8814.31 420.10 5289.66 26616.98 9319.38 711.30 10030.68 16586.30 43836.66
6 7 8 9 10
11
12
66